June 19, 2024

Addressing the Top Three Drivers of Broadband Services

Serial entrepreneur, CEO and co-founder Veego softwarea startup in Israel’s high-tech corridor, innovating CX smart homes.

The numbers are in, and customer loyalty to telco providers down 22% from 2019 numbers.

So, let’s ask the billion dollar question (because that’s at least how much it costs the industry every year): why is this happening?

One of the main reasons is dissatisfaction with the quality of the service, mentioned by 59% of subscribers as a reason for their meeting. But to make the overarching response from “dissatisfied customers” more actionable, let’s break it down and discuss the top three drivers of churn in a telco and understand what CSPs can do to make a difference do.

1. Unsatisfactory Customer Care

The connected home has never been more complicated. Customer care teams are tasked with monitoring and managing a sophisticated home topology with a wide range of apps and devices. There are many things that can go wrong, and customer care teams are expected to solve all of them, with little visibility into operation. As a result, they tend to offer generic solution suggestions, regularly ones that a savvy subscriber might have already tried. Is “try turning the router on and off again” familiar?

There is nothing that deters a subscriber more than wasting their time. Optimizing customer care means:

• Support smarter omnichannel communications so subscribers don’t have to repeat themselves.

• Reduce average handling time (AHT) to resolve issues faster.

• Improve first call resolution (FCR) by offering a personalized white glove experience to those who need to pick up the phone.

2. Poor Network Quality

Strong performance from demanding apps such as streaming, gaming and conferencing is critical to the subscriber experience, especially post-pandemic, where users rely on home connectivity more than ever for entertainment and work. Subscriber demand for a reliable connection is growing, yet most networks fail to deliver. CSPs need to step up their game to understand and resolve service degradation.

However, this may be easier said than done. Problems can arise from a wide variety of sources, including network congestion from the service providers network, home Wi-Fi network saturation or even a faulty CPE. Currently, most CSPs have limited ways of looking at the network as a whole, and may not be able to identify where their own network problems are causing bottlenecks, and which leads to other issues.

3. Low Barrier to Switching Suppliers

It’s never been easier for subscribers to switch to your contest. Even when there are no chronic problems, the market is very competitive, and since the CSPs are always on board with new initiatives to attract users, it’s tempting to make the transition! This adds to the issue of silent slavery, where users switch providers without ever complaining. In some cases, nothing may be wrong at all.

This gives a whole new meaning to customer retention. Rather than fixing service degradation or upping your customer experience game with package upgrades, discounts or freebies, CSPs need to be proactive in providing an experience that’s hard to walk away from.

Three Strategies to Cope with Curn

Contextual intelligence is the path to personalization, visibility and proactive care. CSPs should be using context to truly understand the subscriber experience, thereby addressing the top three drivers of telco churn.

Enhanced Customer Care With Data Analytics

According to McKinsey Research: “Although operators can already collect many types of data, much of it is underutilized or fragmented. The amount spent is very focused on sales and retention, rather than holistic CX improvement.”

With advanced data analytics, CSPs can obtain accurate metrics that reveal the contextual quality of each home’s experience, taking into account the specific applications and devices in use. This score can act as a qualitative and quantitative metric of user experience, a complete view that was not available until now.

How granular can you get in accurately identifying specific apps, device sets and models? Any risk of false identification can lead to the wrong mitigation approach, adding to frustration rather than alleviating it. Consider leveling up with your data, so if you’re not sure it’s HBO, suggest based on a more generic streaming app, or if you can’t be sure it’s an iPhone 14 Pro, work on the premise that iPhone.

Additional Visibility And Network Information

Home network visibility has not been a priority for many CSPs until now, but today, poor network quality is one of the main reasons for churn. By gaining end-to-end network visibility of the specific home network and its connections, CSPs can identify bottlenecks as early as possible. Combining this with root cause analysis and automatic resolution can exponentially increase efficiency when handling service degradation.

For this approach to be effective, AI and ML engines must be up to date. Continuous monitoring of any changes in how applications are architected, keeping track of the number of connections in use at the same time, what type of connections they are and how they use the LAN networks and WAN.

Outreach and Proactive Care

You can’t reduce churn to zero, but you can identify the homes that need a little TLC. The right analytics on contextual data gives you an eye in the sky to identify which homes are “in the red zone” and most likely to move. Then, outreach and proactive care can help these subscribers move the needle on customer satisfaction, whether or not they’re likely to pick up the phone.

It can take trial and error to get your portals and alerts where you want them to be. Take the time to decide how you define a home in the red zone – including what constitutes a bad experience, how persistent or regular the problem must be and whether it involves service calls or complaints .


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